Everything You Need to Know About the $24 Million IKEA Receipt Class Action Settlement

by Kelsey McCroskey

IKEA has agreed to pay over $24 million to settle allegations that it put consumers at an increased risk of identity theft by printing credit and debit card receipts that included more than the last five digits of the card number.

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Specifically, the settlement resolves claims that the Swedish furniture giant violated the Fair and Accurate Credit Transactions Act (FACTA) and offers relief to consumers who may have been affected. The official settlement website can be found at the following address: https://www.ikeausfactaclassaction.com/.

Keep reading to learn more about who's covered by the deal, what the settlement provides, how to file a claim and more.

The settlement, which received preliminary approval from the court on March 11, 2022, covers anyone who, between October 18, 2017 and December 31, 2019, made a purchase at any IKEA retail location in the United States using a credit or debit card and was given a printed receipt that displayed the first six and last four digits of the credit or debit card number used for the transaction.

The settlement resolves the proposed class action Richardson et al. v. IKEA North America Services, LLC et al., which was filed in Los Angeles County Superior Court on October 18, 2019.

To receive payment, you must submit a valid claim form online or by mail by May 4, 2023. To file a claim online, head to this page.

On the "file a claim" page, consumers must select one of three options before proceeding:

Consumers covered by the deal may have received an email or postcard outlining the settlement and their legal rights. This notice contains your personalized claim number.

If you received an email notice, your claim number can be found in the upper-left section of the body of the email. For postcard notices, a consumer's claim number can be found above their name.

If you did not receive a claim number, you can still file a claim for compensation from the IKEA settlement by selecting the third option on the "file a claim" page.

Importantly, the claim form requires you to attest that you received at least one printed receipt at an IKEA location between October 18, 2017 and December 31, 2019. According to the 15-page preliminary approval order, the settlement administrator will check the data entered on claim forms against IKEA's records. If you do not have a qualifying transaction, you will not receive settlement benefits.

The only way to get money from the settlement is by submitting a claim. If you do nothing, you will not receive any benefits and will lose your right to sue IKEA for the allegations covered in the litigation.

According to the official settlement website, consumers who submit valid claims by the May 4 deadline will be entitled to a share of the $24,250,000 settlement fund, which also covers associated fees and costs.

Individual payments are estimated to be between $30 and $60, depending on the total number of claims filed. No money remaining in the fund will revert back to IKEA.

The court overseeing this case has yet to give final approval to the settlement, and a hearing is scheduled for July 28, 2023 in Chicago. Payments will be made to class members after the deal is given final approval and any appeals are resolved.

According to the settlement notice, payments will be made by online deposit or check within 45 days of the deal's final approval. The settlement website states that the resolution process for appeals can take "perhaps more than a year" and asks IKEA class members to be patient.

You can contact the company administering the settlement, KCC Class Action Services LLC, by heading over to this page.

The settlement detailed on this page resolves a proposed class action filed against IKEA in October 2019 over concerns the retailers’ receipts may have violated federal law.

Court records relay that although the parties met with a mediator in October 2020 to discuss a resolution, they were unable to reach an agreement. A second mediation effort was more successful, and by late February 2021, the parties had agreed to initial settlement terms.

In the following months, the parties requested that the court halt all further action in Los Angeles County and filed a "companion action" in the Circuit Court for Cook County, Illinois. In September 2021, a 35-page settlement agreement was jointly submitted to the Illinois court, outlining the parties’ terms.

According to the settlement website, IKEA denies the allegations presented in the litigation and "denies any wrongdoing whatsoever."

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Kelsey works primarily on ClassAction.org's newswire, reporting on cases as they happen.

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